Running payroll is a complex, time-consuming task that most small business owners struggle with.
Zoho Payroll aims to simplify payroll processing with an easy-to-use, cloud-based solution tailored for small businesses.
In this review, we'll take a close look at Zoho Payroll's main features, capabilities, and ease of use to see if it delivers on its promise for small business owners looking to streamline payroll.
Introduction to Zoho Payroll
Zoho Payroll is a cloud-based payroll management software designed for small and medium-sized businesses. It automates payroll processing and provides tools to manage payroll taxes, reporting, and compliance.
Overview of Zoho Payroll
Zoho Payroll offers the following key features:
- Automated payroll processing including salary calculations, withholding taxes, deductions, and direct deposits
- Integration with time tracking software for easy timesheet imports
- Tax forms management including W-2s, 1099s, and annual filings
- Custom, on-demand paystub generation
- Built-in reports for payroll analysis like labor costs, TAX liability, etc.
The software streamlines payroll tasks like calculating taxes, printing checks, filing returns, and providing reports in a user-friendly dashboard.
Key Benefits
Using Zoho Payroll offers several advantages for small businesses:
- Cost-effective pricing starts at $39 per month making it affordable for small business budgets
- Accessibility with mobile access and anytime, anywhere payroll management
- Scalability to grow from 1 employee up to 50+ employees
- Compliance by automating complex payroll tax calculations
- Integration with popular small business platforms like QuickBooks Online and Zoho Books for seamless financial workflows
With Zoho Payroll's cloud-based solution, small businesses can eliminate manual processes, ensure payroll accuracy, and simplify compliance - all at a reasonable price.
Core Payroll Features
Payroll Processing
Zoho Payroll automates payroll runs, including calculating paychecks based on hourly wages, salaries, overtime, bonuses, reimbursements, garnishments, and more. It can handle multiple pay frequencies like weekly, biweekly, semi-monthly, and monthly.
Key features include:
- Direct deposit for employee paychecks
- Print and mail physical paychecks
- Support for payroll debit cards
- Automated federal and state tax withholding
- Voluntary deductions like 401k, medical, dental, etc.
- Payroll liability payments and filings
Zoho Payroll simplifies payroll processing with customizable templates, scheduled payments, and automated reminders for filings and taxes. It reduces administrative tasks for small business owners.
Tax Management
For U.S. small businesses, Zoho Payroll handles complete payroll tax management for federal, state, and local jurisdictions. This includes:
- Income taxes: automatic federal and state income tax withholding, W-2 forms
- Social Security and Medicare taxes: calculates employer and employee contributions
- Unemployment taxes (FUTA/SUTA): handles tax rates, filings and payments
- Local taxes: supports local tax rules and filings based on jurisdiction
Additional features like tax penalty protection and audit assistance help businesses stay compliant and avoid IRS penalties. The software also lets you make tax payments directly from the platform.
Reporting
Zoho Payroll comes with 30+ built-in reports covering:
- Payroll spend by department, location, employee, etc.
- Tax liabilities, payments, and filings
- Attendance, leaves, overtime, reimbursements
- Deductions for health insurance, 401k, etc.
- Gross vs net payroll analysis
The reports can be customized, scheduled, exported, and integrated with analytics tools. This gives small businesses insights into payroll costs, compliance, and workforce management.
Additional Capabilities
Zoho Payroll provides several capabilities beyond core payroll functions to streamline additional HR and finance processes.
Time Tracking
Zoho Payroll integrates with Zoho Timesheet to provide robust time tracking features. Employees can clock in and out on web or mobile apps, and managers can review and approve timesheets. The hours data then flows directly into payroll for automatic calculation of paychecks based on hours worked.
Key benefits include:
- Accuracy of pay based on actual hours worked
- Integration eliminates manual data entry and calculations
- Mobile compatibility for remote workforces
- Tools for managers to review, edit, and approve timesheets
With integrated time tracking, businesses can pay employees precisely based on hours worked while reducing administrative tasks.
Reimbursements
The Zoho Payroll reimbursement module enables employees to easily submit expenses, reducing paperwork and manual processing. Employees simply upload receipts, which route to approvers. Once approved, reimbursements automatically calculate taxes and integrate with payroll.
Major features include:
- Customizable approval workflows
- Automated reimbursement calculation and payroll integration
- Receipt uploading and tracking
- Expense reporting and analytics
By streamlining reimbursements, Zoho Payroll saves employees and managers time while ensuring accurate payroll integration.
Employee Self-Service
Zoho Payroll offers employee self-service portals across web and mobile for access to payroll details. Key features include:
- Access to pay stubs, tax documents, and payroll changes
- Ability to make certain requests and changes
- Communication with HR and payroll teams
- Payroll calculators and tools
The self-service options reduce employee requests to HR and payroll departments while empowering employees with self-reliance over their payroll details.
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Ease of Use
Setup and Configuration
Setting up Zoho Payroll is straightforward for both administrators and employees. The software guides administrators through establishing payroll policies, tax rates, deductions, and other parameters using simple forms and wizards. Contextual help and tooltips explain terminology to assist novice users. Administrators can easily import employee data from CSV files or integrate with existing HR systems. Employees receive self-service logins to access personal payroll details.
Overall, Zoho Payroll aims to minimize complexity during implementation with its intuitive configuration for essential payroll functions. The software focuses on what matters most - accurate policy setup for calculating taxes and deductions.
Ongoing Use and Changes
After initial configuration, Zoho Payroll simplifies running regular payroll cycles with one-click processing. The system automatically applies calculations and policies without ongoing oversight. Managers have access to web dashboards for monitoring payroll spending and can drill down into reports.
When changes occur, Zoho Payroll allows administrators to quickly adjust tax rates, deductions, pay grades, or other parameters through the centralized configuration menus. Adding and updating employee records is simple using the employee database. The software reduces manual work associated with modifying payroll settings or personnel details.
The priority is to help managers focus on strategic priorities rather than payroll mechanics. Zoho Payroll handles computation accurately behind the scenes while providing transparency into reports.
Accessibility and Mobile Apps
Zoho Payroll offers web access for administrators as well as self-service employee portals. The dashboards allow remote management from any device. While the software itself is only available on the web, Zoho integrates with iOS/Android for mobile approvals.
The variety of access options ensures payroll tasks can be completed or monitored remotely. Employees can securely access personal payroll details from mobile devices using their login.
With strong web and mobile capabilities, Zoho Payroll provides flexible payroll management and visibility for managers and staff. The range of access options keeps sensitive data secure while facilitating remote working arrangements.
Scalability for Growth
Expanding Number of Employees
Zoho Payroll offers several features to support businesses as they grow and take on more employees. The software can scale to handle an unlimited number of employees within a single account. As you add new hires, you can easily set up payroll profiles, define pay rates, set up tax withholdings, and manage time tracking.
Some key benefits include:
- No limit on the number of active employees you can add
- Bulk import tools to quickly upload employee data
- Automated tax calculations adjusted for each new employee
- Customizable roles and permissions to provide payroll access
- Reporting dashboards track payroll costs across all employees
By centralizing payroll operations within Zoho Payroll, managers save time and minimize errors when expanding their team. The payroll setup, tax compliance, and payout processes remain just as streamlined at 100+ employees as they do at 10 employees. This scalable platform grows along with your small business.
Multiple Locations and Departments
For small businesses with multiple locations or departments, Zoho Payroll provides advanced tools to manage distributed teams while retaining centralized control.
Key features include:
- Organize employees by location or department
- Set up customized pay rules and job profiles for each group
- Track payroll costs by site or department codes
- Control access permissions to sensitive data
- Merge reports for consolidated insights
Managers gain better visibility into site-specific labor costs and can tailor compensation models as needed. Yet despite decentralized teams, finance still produces integrated company-wide reports for executives. Zoho Payroll helps manage the complexity of distributed workforces at scale.
International Expansion
For small businesses expanding internationally, Zoho Payroll offers capabilities to manage overseas employees and foreign subsidiaries:
- 130+ country-specific payroll tax engines
- Multi-currency payroll runs
- Tools to handle fluctuating exchange rates
- Adherence to local labor laws and regulations
- Unified dashboard for global workforce visibility
By leveraging Zoho's global payroll platform, managers can navigate the complexities of international expansion with minimized risk and overhead. The software centralizes international payroll so you can focus on your growing global business.
Customer Support
Zoho Payroll offers multiple customer support channels to assist users during onboarding and ongoing payroll operations.
Onboarding and Implementation
When first adopting Zoho Payroll, users have access to the following implementation resources:
- Dedicated setup specialists to guide configuration and data migration
- Step-by-step payroll implementation guides and checklists
- Interactive payroll setup wizard for streamlined configuration
- Import tools to transfer data from other systems
- Live setup assistance and screen sharing via phone, chat, and email
These onboarding resources help ensure a smooth transition to the new payroll system. The interactive payroll wizard and data import tools are especially valuable for rapidly configuring payroll components like tax calculations, pay groups, attendance tracking, reimbursements, and more based on the unique needs of the organization.
Ongoing Support
For day-to-day payroll issues, Zoho Payroll offers:
- Contextual help articles and user guides
- Searchable knowledge base with tutorials and FAQs
- Email and in-app chat support during business hours
- Toll-free phone assistance from payroll specialists
Zoho Payroll also designates customer success managers to provide personalized, ongoing support and advisory services to larger clients. These managers help optimize usage of Zoho Payroll over time as the organization's needs evolve.
Training and Education
To help users gain payroll proficiency, Zoho Payroll offers:
- Online training courses and certification programs
- Customizable webinars tailored to clients' needs
- Classroom training sessions at Zoho offices
- Archived training videos accessible 24/7
The Zoho Payroll training course catalog covers platform basics, configuration best practices, global payroll scenarios, and more. Users can pursue self-paced online courses for flexible learning or request custom webinar sessions matching their current priorities and challenges.
With its breadth of customer support resources, Zoho Payroll aims to provide prompt, hands-on guidance at every stage - from initial setup to ongoing payroll processes. The contextual help features, knowledge base, and live support channels allow users to quickly resolve common issues independently as well.
Summary and Conclusion
Main Takeaways
- Zoho Payroll is cost-effective, with plans starting at just $9 per month plus $4 per employee per month. It can save small businesses significantly on payroll expenses.
- It is easy to set up and use, with an intuitive interface and helpful customer support. Users can be up and running quickly.
- Features like automatic tax calculations, direct deposit, integration with accounting software, and mobile access provide a lot of value.
Best Suited For
Zoho Payroll works best for small businesses with simpler payroll needs, including:
- Businesses with 1-100 employees
- Companies focused on reducing payroll expenses
- Organizations that want an automated solution to simplify processes
- Businesses that need basic payroll features like tax calculations, reporting, and direct deposit
Considerations
- Advanced features like benefits administration and shift scheduling require upgrading to higher cost plans
- Limited ability to customize reports compared to some competitor platforms
- Must purchase add-ons for extra functionality like applicant tracking
Final Verdict
For small businesses looking to efficiently manage payroll in-house without breaking the bank, Zoho Payroll is an excellent solution. The platform makes running payroll easy and affordable. For the price, it packs an impressive selection of features that should meet most small companies' needs. Unless advanced customization or niche features are required, Zoho Payroll is a reliable pick.
